1. Photovoltaic Systems: Market Drivers, economics and opportunities Lyndon Frearson General Manager CAT Projects

2. Engineering consultancy based in Alice Springs Specialising in: – Remote Area Project Management – Energy and Power Systems Engineering – Community and Stakeholder Engagement Owned by and Indigenous NGO with 30 years experience in remote areas

3. Traditional market for PV has been – Small cattle stations – Indigenous outstations – Lifestyle accommodation eg Beach houses Typically Renewable component not larger than 30kW But that’s all changed…

4. Installed Capacity 2011, Australian PV Association

5. Installation per annum 2011, Australian PV Association

6. Challenging time for industry: FiTs ending Solar Credits – 5X to 3X to 2X – $37 to $27 Solar Schools & Solar Cities winding down Notable negative commentary on PV (see IPART Hearings)

7. More change ahead: Carbon Price – At $23/Ton ~2 c /kWh increase – Some compensation Network charges increasing by 40% Enhanced Renewable Energy Target – RE Energy Certificates can be sold: – currently >$40/MWh (4 c /kWh) – highest predictions $70/MWh

8. Economic viability: Generally getting better, IRRs>15% achievable with >25 year asset life Cheaper to install in new build although more co-ordination Integrated PV can be very affordable where glass curtains/atriums etc are to be installed anyway

9. Standardised investment model Validated by super funds Looks at: – Capital Cost – Operating Cost – Revenue – WACC – Depreciation – Maintenance etc

10. Influence on IRR

11. 100% Energy Supply

12. Demand profile (night/day, usage types) Environmental influences (cloudy/sunny, hot/cold) Supply characteristics (Demand charges, TOU tarrifs,PV performance) Optimised power system – MAX use of RE

13. Crowne Plaza Alice Springs Total hotel energy consumption in 2008: – 3800MWh electricity – 2700Gj gas Solar System save 504MWh/year 14% saving Peak output of 80% of load Case Study

14. 1326 solar panels 52 inverters Saves 420tonnes CO2 annually Total Energy Efficiency investment including PV >$4.0M Final Target, reduce Gas, Electricity and water by 50%, 40% and 30% respectively Actual savings: 56%, 41% and 27% respectively

16. For more information: www.catprojects.com.au Lyndon.frearson@catprojects.com.au